NCREDA makes revolving loans available for small business

USDA Rural Development Nevada recently granted Nye County Regional Economic Development Authority (NCREDA) $30,000 to develop a revolving loan fund for small and emerging private business in Nye County. NCREDA matched the Rural Business Enterprise Grant with $21,900 of in-kind contributions.

Acting Revolving Loan Fund Manager Amy Fanning with the NCREDA said the contribution will be in the form of the NCREDA staff efforts in administrating the loan, processing the paperwork and making presentations.

Fanning said the grant was finalized just last week, along with the application forms, and she spent the weekend working on public information materials and flyers. “This is new. It’s the first grant attempt NCREDA has made and we’re excited to have been awarded the funds.”

The program will offer loans up to $5,000 to small businesses in Nye County, whose owners cannot obtain regular commercial credit due to the small size and/or the lack of a proven track record of their business.

Small businesses in Nye County developing a business enterprise are eligible to apply for the funds. Revolving loan funds are loaned out to eligible small businesses, paid back, and then cycled back out to other new businesses in the future, extending regional opportunity for business development.

Fanning said the funds can be used for inventory, working or start-up capital, needed equipment and other items.

“The money can be used for things such as a needed piece of software, or if you need a laptop in order to grow or start a business. Borrowing the money through NCREDA is cheaper than financing using a credit card to keep a business going as well.”

There are two loan categories for both new and existing businesses. Fanning said the interest rate differs depending on if the business is new or existing, and the amount of the loan.

New businesses borrowing from $500 to $2,500 will pay 2.5 percent interest with a loan repayment of 24 months; loan amounts between $2,500 and $5,000 will pay 3 percent over 36 months.

Existing businesses borrowing between $500 and $2,500 can get a lower interest rate of 2 percent over 24 months; and the loans from $2,500 to $5,000 will have interest at 2.5 percent over 36 months.

Fanning said there is a 10 percent application fee, not to exceed $100 and the equivalent of a 20 percent down payment is required.

“Those using the money to start a business need to have another source of income,” Fanning added.

To be eligible, the business must be located in Nye County, create or retain at least one job and demonstrate credit-worthiness and the ability to repay the loan.

Fanning said the grant funds are available every year, and the organization intends to reapply next year. Fanning was the primary grant writer for the organization’s endeavor but said, “It was with the board’s input an approval.”

To apply for the revolving loan fund, contact Amy Fanning at NCREDA for more information at 775-751-7091 or visit to download an application.

“The RBEG revolving loan funds provide a ladder of opportunity in these areas that can help small businesses to succeed,” said USDA RD Business Programs Director Herb Shedd. “We have seen success in Lincoln County with a similar program, which continues to fund ongoing business enterprise there.”

Pamela Webster, who is currently President of NCREDA, and also serves as the Nye County manager, says the funds will be welcomed by small businesses in the region.

“We know many small businesses are struggling, and this revolving loan fund offers them a chance to bridge a gap, build a bit of inventory, or invest in systems to be more efficient,” Webster said. “These projects will result in jobs, and that’s a win-win for the business, the community and the Nye County tax base. The program is extremely beneficial to NCREDA because of the potential to extend loans beyond the life of the grant.”

USDA has made a concerted effort to deliver results for the American people, even as USDA implements sequestration – the across-the-board budget reductions mandated under terms of the Budget Control Act. USDA has already undertaken historic efforts since 2009 to save more than $828 million in taxpayer funds through targeted, common-sense budget reductions. These reductions have put USDA in a better position to carry out its mission, while implementing sequester budget reductions in a fair manner that causes as little disruption as possible.